Bringing you live news and features since 2006 

VanEck launches US fallen angels UCITS ETF: USFA/ANGB

RELATED TOPICS​

VanEck has announced the listing of the VanEck US Fallen Angel High Yield Bond UCITS ETF on the London Stock Exchange and Deutsche Börse Xetra. 

The firm writes that this new ETF allows investors to invest in US dollar-denominated, high yield corporate bonds that were previously rated investment grade, also known as ‘fallen angels’.

“Many institutional investors are often forced by their investment mandate to sell bonds when they are downgraded below investment grade. Our strategy systematically buys these oversold and possibly undervalued bonds,” says Martijn Rozemuller, CEO at VanEck Europe. “Fallen angels have historically shown a higher likelihood of returning to investment grade status following a downgrade than the broad spectrum of high-yield bonds. This offers upside potential that investors can participate in with our ETF.”

The ETF’s investment strategy invests in sectors that experience frequent downgrades, as was the case for the banking sector in 2008 and the energy sector in 2016. Compared to broad high-yield bonds, fallen angels often exhibit higher credit quality with a higher concentration of BB rated bonds, the firm writes. 

The physically replicating VanEck US Fallen Angel High Yield Bond UCITS ETF tracks the ICE US Fallen Angel High Yield 10% Constrained Index, which comprises of high-yield US dollar corporate bonds rated below investment grade that were issued at investment grade. These bonds must have been issued in the US domestic market and have a remaining maturity of at least one year.

The accumulating ETF is rebalanced monthly and has a total expense ratio (TER) of 0.35 per cent p.a.

Latest News

US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Ed Rosenberg, Texas Capital
Texas Capital Bank first opened its doors back in December 1998 and nowadays offers wealth-management services, as well as commercial,...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by